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3/20/2014 3:25PM

Airbnb's Funding Talks Value It at $10 Billion

Airbnb is in advanced talks to secure funding that could place it ahead of several large hotel operators. WSJ's Evelyn Rusli joins digits to discuss why the online home-rental service is now one of tech's most valuable startups. Photo: Airbnb.

This transcript has been automatically generated and may not be 100% accurate.

... and the unclean salts to the new company at ten a m billion box will commit Digits I'm Simon console Evelyn Reuss Lee joins us from ... on its Silicon Valley sentences go Bureau thank you Brian much for being that one ... in a ten billion dollars that's a lot valuation for a relatively young company ... yet it seems like the number is a getting bigger and bigger every week it seems like every week people are also raising ... gobs of money year's sale air BNB is ... a room rental service and essentially turns ... initials like you and me into many tiny as in you can ... Mr. Pow show your spare bedroom on line ... and you can collect fees for men and are a savvy be takes a fraction of that sell ... its eleven startups this was founded a few years ago in two thousand ate and now it's that it's a competitor ... in the hotel industry ... it is a competitor in the hotel in this deal but hating New York it's been some control the CIA around it and that ... some some ... politicians assigned basically this is on the competition for local hotels I can imagine that the hotels ... on them and be particularly pleased about us ... now I imagine there won't be physically present haven't in fees for YL about this new model coming on line aam but as we see with the broader sharing economy ... and that this larger market than the CEO for enlists playing and where people are kind of turn in Suntech Harrison ... offering up their action resources whether that's time or cars ... or homes to other people receive ... this type of trend of this larger sharing economy is gaining traction ... say wouldn't be surprised and regulations change in the future that's obviously what ... our BB is banking on ... now when the last race on Monday that valued the company was to an off million dollars that was in twenty twelve so just a couple years ago ... and now four times the value ... that is some serious pro ... yes this happened they have roughly six hundred thousand ... listings and what's the missing the last few weeks and months is that ... the phone as of the air BNB have been intimating ... that they are planning some in this can be far beyond just renting rooms they want is ... getting some more of a broader hospitality business and CC that with them talking about him maybe offering a cleaning service to hose for example ... or China transportation from the airport ... so they are being the founders ... know that they have a big businesses trying but there seemed even larger hide out there so they wanna know more ... of the travel experience which it isn't what I guess you're you're seeing in this ten billion dollar price tag and his tempo in price so if if indeed that's what they manage to get this back some pretty pretty high up the list of hotel chains and even the vandal of the hotel chain ... on the bigger them when demand higher than the InterContinental not quite ... as big as hell reliable Stahl what that still pretty thick ... now they're they're fairly they in you also ... see on the public market there's a lot of their styles HomeAway witches Branson vacation homes in that ... company is worth about four billion which now seems pretty small compared to air TV ... but I think what's interesting as as we look into the development of this sharing economy ... as the startups continued to rise that ... in as some consumers is clearly a segment in the consumer market that is ... looking for something different looking for ... a non standardized hotel ... experience ... now one of things I think is particularly interesting with that baby is they don't actually have to construct any buildings ... themselves and that's gonna be a huge expense to come up to warn about ... still I know other hand I also don't own any real say like some of the larger hotel ... groups out there but ... it is something that's very lightweight the new it's really up to the user's the host to ... put everything together for for people to rent but ... I guess is also a downside to that in that ... you know when you don't have control of the aunts and experience can ... leave it up and she'll host behaving badly or uses behaving badly which is why they have a very large ... insurance policy but the net this isn't a new type of business models a lot to see how plays out and whether or not ... then she will testify ten billion plus valuation ... will will find out soon enough by Kiran much when richly of the will Street gentle ... think am ... I'm Simon console on and this is digits